Top 5 Mistakes Families Make with Medicaid Applications in Kansas
A Guide for Kansas Families Facing Long‑Term Care Planning
Applying for Medicaid can be one of the most stressful parts of planning for long‑term care. Unfortunately, there are common pitfalls that can cause delays, reduce eligibility, or create unnecessary costs.
The mistakes below aren’t due to malice — they’re usually the result of incomplete information or misunderstanding how Medicaid actually works.
Mistake 1 – Misunderstanding Medicaid Penalties
What People Think:
Medicaid penalties are financial fines.
The Real Issue:
Medicaid penalties are time penalties — during the penalty period, Medicaid simply doesn’t pay for care.
If a transfer falls within the five‑year lookback period, Medicaid will delay coverage for a period of time. During that period, the family must pay for care out‑of‑pocket.
Example of Risk:
If assets were transferred or gifted in a way that raises questions, Medicaid could delay eligibility — which is effectively like paying a penalty in time, not money.
Mistake 2 – Misunderstanding Spousal Protections
A common misconception is that only half the assets can be kept for the spouse. In reality:
With proper planning, you can often preserve most or all of the family’s assets, especially when an annuity strategy or other planning tool is used.
Planning early and structuring resources correctly makes all the difference.
Relying on a simplistic interpretation of spousal rules can cost families thousands in unnecessary spend‑down or penalties.
Mistake 3 – Poor Documentation and Lookback Red Flags
Medicaid initially reviews about three months of financial records, but that can expand to up to five years if they see anything unusual.
Common “red flags” include:
Large unexplained withdrawals
Sudden disappearance of funds
Real estate sales or transfers
Inconsistent documentation
Large deposits without explanation
If Medicaid sees unexplained patterns, they will dig deeper — and that often leads to delays or penalty periods.
Mistake 4 – Accepting Non‑Legal Advice
Bankers, care facility staff, and even some financial advisors may offer guidance that sounds reasonable but isn’t legally sufficient.
Non‑lawyers often do not understand:
What counts as a Medicaid resource
How lookback periods affect eligibility
What strategies are legally permitted
How annuities and trusts interact with eligibility
Only a Medicaid planning attorney can confidently guide you through these decisions.
Mistake 5 – Poor Timing
It’s not always obvious when to apply.
Apply too soon:
You may have too much in countable assets and be denied.
Apply too late:
You may lose eligibility for months that could have been covered retroactively.
Correct timing with a plan can reduce out‑of‑pocket costs and preserve more assets.
Final Thought
Medicaid can help with nursing home costs, but it doesn’t have to erase your financial legacy. With the right planning — especially when working with experienced legal counsel — you can prepare strategically for long‑term care without losing what matters most.
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